If you have employees, you must offer them health insurance and other benefits in order to stay competitive in today’s job market. Even if your company is small enough to not be required to provide insurance, you should still consider it. Your employees deserve some peace of mind. While it may not directly increase their job performance, it will significantly increase their worries. Not having insurance can be very stressful, especially if you have a number of health problems or if you have young children.
There are a million different ways to create an insurance plan for your employees. Every single one of them differs in terms of monthly premiums, copay, deductible, maximum out-of-pocket, and services covered. What makes it even more complicated is the fact that you can offer medical, dental, prescription, vision, and a variety of other benefits. How do you even start?
The best thing you can do is to get a few different plans to compare. It’s important to list all the important details side-by-side in order to see which one makes more sense. For employees who go to the doctor frequently, high copay is a bad thing. On the other hand, most employees would prefer to have low monthly premiums as well. Unfortunately, a low monthly premium generally means that deductibles and copays tend to be higher.
Most health insurance plans are cheaper the more employees sign up for it. In order to encourage participation, you need to educate your employees about the benefit plans. Go over the premiums, copay, deductibles, and everything else in detail, until they understand how it works. You need to encourage your employees to compare the plans to their current health insurance. It might make sense for them to switch.
Another way to encourage participation is to offer a generous subsidy of premiums. Even if you don’t pay the largest salaries, you can still attract quality personnel by taking care of their insurance premiums. You don’t have to pay the premiums for their entire family, but you should try to pay a big portion of each individual’s premium. Providing great insurance is something you can definitely use as an enticement for new applicants as well.
Offer More than Others
Another great way to stand out as an employer is to offer more benefits than others. While not every employer offers medical and dental insurance, neither are unusual. However, if you also offer vision, prescription, and life insurance to your employees, they might take notice. Providing packages of insurance might also help you lower the total amount of insurance premiums. Employees also appreciate the option to plan for retirement through their employers.
The best type of health insurance is not necessarily the cheapest. It might also be important to your employees which hospitals and doctors are covered. After all, nobody likes to switch their family doctor if they can avoid it. Therefore, it’s sometimes a good idea if employees don’t have to stick to a certain network of providers. On the other hand, if choosing a doctor from the network can result in substantial savings, some employees might be more than happy to switch their healthcare provider.